UPDATE 1-Constellation Software Q1 tops market

May 4 (Reuters) - Constellation Software’s first-quarter profit topped market estimates, helped by higher sales at both its private and public sector divisions.

Constellation, which makes customized software for private and public sectors entities, forecast gross revenue of $725-$750 million, and adjusted EBITDA of $145-$170 million.

January-March earnings rose to $64 million, or $3.03 a share, from $8 million, or 38 cents a share, a year ago.

The eight-fold rise in net income was due to an increase in deferred income tax recovery of $52 million, compared with the same period last year, the company said in a statement.

The Toronto-based software maker earned $1.28 a share on an adjusted basis.

Revenue rose 23 percent to $178 million.

Analysts, on average, had expected earnings of $1.14 a share, on revenue of $170.8 million, according to Thomson Reuters I/B/E/S.

Shares of the company, which said early last month it was reviewing strategic alternatives, have gained 4 percent since, and ended at C$68.10 on Wednesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore;Editing by Vyas Mohan)